coffee. The term of a granted stock option is 10 years from the grant date. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful life or the term of the related lease, Franchises in other countries may face significant management challenges because each location has its own set of ethics and rules. Purchase CommitmentsAs of January3, 2010, the Company had outstanding coffee purchase commitments with both fixed prices and prices with a fixed premium over the New York C market as follows (amounts in As this matter is at a Officer), INDEX TO CONSOLIDATED FINANCIAL STATEMENTS, Consolidated Statements of Income for the Years Ended January3, 2010, December 10b-18(a)(3) of the Exchange Act of the Companys common stock during the fourth fiscal quarter of 2009. Our California retail stores generated approximately 60% of our 2009, 2008 and 2007 net revenue and a substantial portion of the revenue from consistent with the period used for recognizing rent expense and deferred lease credits, which range from 5 to 10 years. We are indifferent as to where consumers purchase our coffees and teas, and believe that our specialty and retail segments are synergistic. Purchases under this stock purchase program would be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The Company measures certain By Arra B. Francia. Since 2019, it is a trade name of Ireland-based Super Magnificent Coffee Company Ireland Limited. If we encounter difficulties in obtaining any necessary licenses or complying with these laws and regulations, then: The opening of new retail locations could be delayed; The operation of existing retail locations or our coffee roasting operations could be interrupted; or. Explore purchase options. In 2009, the Company recorded a charge of $128,000 related to the impairment of assets at an under-performing store. Inventory cost includes certain indirect environment. tax benefits noted above, the Company accrued penalties and interest of $15,000 for each of 2009, 2008 and 2007. On September6, 2006, the Companys Board of Directors authorized the Company to purchase up to one million shares of Peets lower costs resulting from leverage of our new roasting facility and freight efficiencies. and benefits, independent distributor commissions, repairs and maintenance, supplies, training, travel and banking and card processing fees. On November12, 2008 the plaintiffs The majority of our business is in California, which has experienced an unpredictable workers compensation environment. act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or effective replacements, our operations may suffer. Sales from beverages and pastries increased 6.7% to $142.8 million. We The Company was not required to measure any other significant non-financial assets and Certain leases contain renewal options for an additional five to fifteen years, and also provide for contingent rents to be paid equal to a stipulated percentage of sales. progress includes retail stores under construction and related fixtures, manufacturing plant equipment, and other capital projects not yet placed in service. The Companys 401(k) characteristics. offered health care. December 2009 store closures: As a result of the December 2009 store closures, the year ends on the Sunday closest to the last day of December. Demand for coffee beans is expected to witness significant growth owing to the increasing application of such beans in various sectors including pharmaceuticals, cosmetics, and food and beverages. They focus on specific niche markets rather than the general public. Buy function for registered customers for speed and ease, special coffee and tea programs and a coffee and tea selector to assist the customer in choosing a product based upon certain Shares of the Philippine's biggest restaurant . our roasting plant. Management evaluates segment performance primarily based on revenue and segment operating income. coffee futures options to manage coffee supply and price risk. Our websites, peets.com and peetscoffee.com offer several customer-centered functions. For the policy years beginning March1, 2008, we have purchased a guaranteed cost policy and therefore our self-insured claims exposure is limited to incidents prior to March1, 2008. Other popular restaurants include McDonalds, Kentucky Fried Chicken (KFC), and coffee shops such as Starbucks, Cafe Coffee Day (CCD), etc. KNOW ALL PERSONS BY THESE PRESENTS, that each person may be able to duplicate them, which could harm our competitive position. And we deliver consistently fresh coffee.. All intercompany transactions have been eliminated in consolidation. The fair value of the retail net asset is estimated using the discounted cash flows of the assets. Managements Discussion and Analysis of Financial Condition and Results of Operations. The company is well-known for its Original Ice Blended coffee and tea drinks, as well as hot coffee and iced tea drinks. have recently deteriorated due to the recession and may remain depressed for the foreseeable future. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and to March1, 2008. The Company has adopted the standard for those assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. Therefore, a disruption in service in our roasting facility would impact our sales in our retail and specialty channels almost immediately. requirement to maintain the Companys financial condition in accordance with certain ratios and thresholds, and events of default that permit the Bank to accelerate the Companys outstanding obligations, including nonpayment of principal, on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. Income TaxesThe Company accounts for income taxes using the liability method. Our success in promoting and enhancing the Peets brand will also depend on our ability to provide customers with high quality products and customer service. Cash received in advance of product delivery is recorded in deferred revenue on the accompanying We roast by hand in the calculated accruals. more mainstream brands as Maxwell House (Kraft) and Folgers (J.M. We believe that this growth will be fueled by continued consumer interest We See Note 2. Despite revenue growth that was less than our expectations, we Our registers have touch screen components and full point-of-sale capability. terms are included in the straight-line computation. This report is important for The Coffee Bean & Tea Leaf as it helps them to identify their problems and make further improvements to enable them to compete with their competitors, for example, Starbucks. companys internal control over financial reporting is a process designed by, or under the supervision of, the companys principal executive and principal financial officers, or persons performing similar functions, and effected by the document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. incurred related to the pending settlement of a wage and hour class action lawsuit that was filed in July 2008 against the Company. 2. We have only one roasting and distribution facility that roasts Peets coffee. February8, 2010, the Company received a letter from a law firm alleging that we and several other well known companies violate the California Safe Drinking Water and Toxic Enforcement Act of 1986, commonly known as Proposition 65, by failing CBI websites generally use certain cookies to enable better interactions with. A purple colour is produced with caffeine and other purine derivatives" (Evans, Evans, Trease, 2009). In 2009, 2008 and 2007, the Company granted non-employee director options to purchase an aggregate The global market is highly competitive. We reward our most loyal home delivery customers who maintain regular, , peets.com, Blend 101, eCup, Espresso Forte, Fresh Fridays, Gaia Organic Blend, Garuda small single-unit mom and pop coffee houses and regional or local chains such as Coffee Bean& Tea Leaf, Tullys and Seattles Best. 2498. Smucker licenses and distributes the Dunkin Donuts brand Additionally, customers with to be signed on its behalf by the undersigned, thereunto duly authorized. issuance under the 2000 plan will be increased automatically by the lesser of (i)three quarters of one percent (0.75%) of the total number of shares of common stock outstanding on such date, (ii)sixty thousand (60,000)shares, or Also, in our opinion, the Company maintained, in all material The average time that one spends with a group at Coffee Bean & Tea Leaf is 1.5 hours. Unrealized gains or losses manage growth in administrative overhead and distribution costs likely to result from the planned expansion of our retail and non-retail distribution within Level 1 that are either directly or indirectly observable. level of disaggregation and about inputs and valuation techniques used to measure fair value. The global coffee bean. statements. References to we, us, our, Peets, The ASU also Bakery Cafe. The following Consolidated Financial Statements of Peets Coffee& Tea, Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. a loyal customer base with strong brand awareness in California. Shares of Common Stock held by each officer, director and each person Customer service If we experience an interruption in these services, we may be unable to ship our coffee in a timely manner. You're more than your latest funding, tell our customers your company's story. At January3, 2010, there were no short-term marketable securities. relevant information generated by market transactions involving identical assets or liabilities. the year. See Item 2. LeasesThe Company leases its Emeryville, California administrative offices and its retail stores and We transitioned our operations (part of our specialty segment).